There are more than 500 casinos on Native American tribal lands in the United States, as well as many other businesses that take advantage of special regulation in special jurisdictions. Soon, this list of corporations may include startups in crypto, blockchain, and fintech. Spaces.
This is already the case in Rock Hill, South Carolina.
25 miles south of Charlotte, Rock Hill County is home to just over 100,000 people, in addition to the Catawba Indian Nation. And this country has just created a special economic zone with regulatory certainty for web3, crypto, blockchain and fintech corporations that are nowhere to be located. something else in the United States.
“What Catawbas are constructions is a special economic zone,” Catawba Digital Economic Zone CEO Joseph McKinney recently told me on the TechFirst podcast. “A special economic zone is a domain within the host government that has other legislation or legal codes and regulations that make companies locate there. And historically that was done physically, a workplace or some kind of physical construction was established in that domain. But with the domain that the Catawba are building here, what they have to do is register practically to set up a business. And in doing so, they abide by the legal codes and regulations of this special economic zone.
Think of e-Residency in Estonia, for example.
The advantage, primarily, is regulatory certainty for corporations in high-tech industries involving virtual assets, which does not exist in the United States, let alone the world. demanding location situations, as well as bureaucracy for American startups.
It is still not entirely clear what exactly this “normative certainty” means. Catawba voted to create the Digital Special Economic Zone in February, but there is still much work to be done to put in place a legislative and operational framework for companies wishing to be living there. One thing it possibly wouldn’t be is a new, wild west with no regulations and no obligations for existing legislation in the United States. KYC and AML still apply; cash laundering is not welcome.
“Using a style similar to eResidency in Estonia, after meeting Know Your Customer (KYC) requirements, anyone in the world will be able to create an online eCorporation at GEZ and take advantage of policies and regulations that allow them to securely manage their virtual assets, raise investment capital and offer virtual banking services,” says Catawba Corporation, the tribe’s owned and controlled company.
And while many crypto citizens in EE. UU. se have moved to Puerto Rico for cryptocurrency-friendly tax regimes, this is not a tax game.
“It’s not a tax game,” says McKinney. Es an article on regulations and legal codes. And, you know, Puerto Rico, it’s fantastic for that. In fact, it’s not a competitive task, so it’s collaborative. Puerto Rico is ideal for Americans looking to reduce their tax burden. Therefore, they will settle there to gain advantages of a lower tax remedy at the federal level. Actually presented to other people is moving to Puerto Rico, but registering your business in the Catawba Special Economic Zone so that you can get advantages of adjudicative arbitration, whereas when you are in Puerto Rico, you get advantages from your non-public source of income and capital gains arbitrage.
Once fully operational, Catawba hopes the special economic zone will be lucrative. Thomas Trimnal, vice president of Catawba Corporations, says it will put the engine at the forefront, attract cash and investments from global players, not just the United States. and create more jobs for the tribe.
“There are so many places in Asia that other people don’t have such favorable climates for this kind of situation,” Trimnal says. “And it can be a safe haven for them. “
In addition, Trimnal says, it will be agile.
Like global adjustments and crypto/blockchain adjustments, the special economic zone will update its regulations much faster than a state or country.
To do this, of course, you will have to create and publish those regulations, and then establish a framework for them over time.
He’s great:
“In 7 to 10 years, I need you to take at least a significant percentage of the Delaware market for corporate registration or even update it as a gold standard,” Trimnal says. “And I think they’re all achievable goals. “
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